To the scoreboard:
- Dow: 25,974.99 +22.51 (+0.09%)
- S&P500: 2,888.60 -8.12 (-0.28%)
- AUD/USD: 0.7193 +0.0014 (+0.20%)
- ASX SPI futures (September contracts): 6,190 (-25)
1. European markets followed Asian stocks lower overnight, but falls on the S&P500 were relatively muted despite a sharp selloff in tech stocks as US Congress questioned executives from Twitter and Facebook. The wash-up is that the ASX is pointing lower again after yesterday’s big fall.
2. After some heavy losses in Asia yesterday, the FTSE Emerging Markets equity index has now fallen into a bear market. But there was some respite for EM currencies overnight as the Turkish lira and Argentinian peso both gained more than 1% against the US dollar.
3. The US trade deficit jumped to a five-month high. The gap with China hit a record peak, just before the Trump administration is expected to announce additional tariffs on $US200 billion worth of Chinese products.
4. The UK pound and the euro also rose sharply against the greenback, following reports of a Brexit compromise from Germany and a promise of responsible fiscal management from the new Italian government. Italian 10-year bond yields fell by another eight basis points to 2.95%.
5. And cryptos got beaten up overnight, with Bitcoin down 5% and back below $US7,000 after reports Goldman Sachs has dropped plans to open a crypto trading desk due to regulatory uncertainty. The bank said it will now refocus on Bitcoin custody products for large investors.
6. Oil prices fell by more than 1% after almost hitting $US80 on Tuesday, as OPEC cited concerns around global demand due to trade war threats. Gold and copper both clawed back some of yesterday’s falls, while iron ore caught a bid.
Here are the key events on today’s economic calendar:
- Australian trade data for July.
- Germany factory orders.
- ADP payroll data, ISM services PMIs and factory orders in the US.
Have a great day.
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